The future of sponsorship in 2024: Trust, Technology and Transformation
In the ever-changing landscape of sports sponsorship, 2024 promises to be a year of transformation, marked by shifting trends, technological advances and the emergence of new frontiers. Trust, once a somewhat underrated element in sponsorship, is now becoming a golden value, especially in a world where confidence in traditional institutions is in decline. As we explore the future, several key themes are set to shape the field of sponsorship.
Trust in Sponsorship: A Golden Value
Trust is emerging as a cornerstone in the world of sponsorship. In an era when trust in traditional institutions, including government, is in decline, brand sponsorships at sporting events have surprisingly become one of the most trusted advertising channels. Trust, considered a "deficit value", is gaining in importance where it is scarce. As companies face automation and robot skepticism, sports sponsorship occupies a unique position, offering a golden value that is set to become increasingly important.
The Technology Behind Sponsorship
While the appeal of cutting-edge technologies such as augmented reality, virtual reality and drones captivates the sponsorship world, the real potential lies in the intersection between sponsor activation and sports technology. Digital ticketing, contactless payments, data integration and sponsorship measurement are emerging as unsung heroes of the sponsorship industry. Sponsors armed with relevant data are reaping the benefits, and as technology continues to advance, more meaningful insights across industries are on the horizon.
Marketing in Partnerships
The term "commercialization" often has negative connotations, but there are times when direct commercial intent can be perceived as genuine. The introduction of the first edible mascot at the Pop-Tarts Bowl is a case in point. Understanding when a brand has license to be commercially oriented in sponsorship activations is an art, and successful examples like Pop-Tart Strawberry demonstrate how this can be achieved without compromising authenticity.
Revisiting partnership portfolios
The unexpected rise of sports like Pickleball in 2023 underlines the importance of revisiting partnership portfolios. Accessibility and broad demographic appeal make Pickleball an attractive addition for brands targeting multiple audiences. In a landscape where trust plays a pivotal role, partnering with sports that evoke purity is becoming increasingly valuable.
Sponsorship concerns on the horizon
Deloitte consultants see private investment in sport and sponsorship as drivers of increased commercialization and professionalization. However, there are concerns about conflicts of interest, as evidenced by research questioning over 300 Saudi sports sponsorships. Balancing the quest for sponsorship revenue with issues of probity and human rights raises crucial questions about the future trajectory of trust in sports sponsorship.
Predictions for 2024
US Professional Sports Sponsorship Market Set to Unlock $1 Billion in Additional Revenues to Reach $8 Billion in 2024
The US professional sports sponsorship market is poised for substantial growth, potentially reaching $8 billion by 2024, driven by an increase in branded advertising options, celebrity and influencer investments, and innovative exposure assets.
Women's Sports Sponsorship poised for unprecedented growth, tapping into $1 billion global market potential
Women's professional sports sponsorship in the US, encompassing the WNBA, NWSL, WTA and LPGA, is experiencing unprecedented growth, marked by a 25% increase in investing brands and partnerships in 2023 compared to the previous year.
AI: The Next Frontier of Fan Engagement and Brand Integration
The integration of AI into sports sponsorships is gaining ground, with over 75 brands already using AI and a further 115 investing in both sports and entertainment. Despite the prevalence of AI, there remains huge untapped potential, as 95% of major professional sports teams in the US currently do not have an AI partner.
AR/VR Gold Rush: Rightsholders will Fuel a Revenue Revolution by Responding to Evolving Fan and Brand Dynamics
Digital-focused sponsorships, where traditional TV advertising and social media campaigns dominate, now dominate the professional sports marketing landscape. More than 1,000 brands have also invested in virtual signage in 2023, mainly in the NHL and MLB, almost double the number in 2021.
Sports Betting Set to Dominate as Next Major Player in Sponsorship Spending
The US sports betting market, with a projected valuation of over $40 billion by 2030, is a fiery new frontier for sponsorship deals. FanDuel and DraftKings are leading the charge, with major partnerships signaling a landscape ripe for collaborations with streaming platforms to offer live betting lines and interactive experiences.
As we cross the 2024 barrier, the sports sponsorship landscape is poised for dynamic change, with technology, trust and strategic partnerships at the forefront of the industry's evolution. Brands that effectively navigate these trends are likely to unlock new opportunities for engagement, revenue and lasting connections with fans.
Comments